Zillow wins dismissal of RESPA claims in Flex referrals case

While Zillow’s legal battles on other fronts may be heating up, for now, it no longer has to contend with claims of Real Estate Settlement Procedures Act (RESPA) and racketeering violations. On Monday, Seattle-based federal court Judge James Robart granted Zillow’s motion to dismiss the combined Taylor and Armstrong lawsuit. According to the ruling, the complaint does not contain enough factual allegations to satisfy the standards for the claims the plaintiffs made. “Plaintiffs’ claims of lack of notice are implausible given Zillow’s express, repeated disclosures,” the ruling states. “Plaintiffs fail to plead specific facts showing how Defendants’ practices actively undermined the home-buying process, restricted informed lender choice, or eroded trust in real estate professionals.” Originally filed in mid-September 2025, the lawsuit claims that the portal tricks consumers into using agents affiliated with Zillow through its Flex and Premier Agent programs, resulting in inflated home purchase prices. In an amended complaint filed in mid-November, Taylor also alleged that Zillow violated the Racketeer Influenced and Corrupt Organizations (RICO) Act by pushing homebuyers to apply to m...